In our previous article, we have explained how you can create a new account on the Binance exchange, deposit and withdraw crypto/fiat, transfer one internal account into another, and the overview of the Fiat and Spot account.
In this article, we will see how you can use and perform P2P trading with your account on the Binance exchange.
“Peer-to-peer” (P2P) trading is a form of trading where the buyer and seller exchange directly their crypto and fiat assets, with the help of an online marketplace and escrow services.
For doing P2P trading, users are required to complete the KYC verification.
Users can verify their profile by giving any government-authorized proof of identity document and a live face detection process.
Click on ID & Face Verification and go through the verification process. You will receive an email confirmation regarding the status of the verification process.
Once the profile verification process is complete, you can use the P2P trading feature.
You can see the different tokens available for P2P trading.
How Does Binance P2P Trading Work?
Binance P2P is a peer-to-peer trading market where users can safely trade crypto in exchange for their desired local currency. It uses an escrow service, a trusted third party that handles the exchange of assets between the parties involved and ensures safe and fair trading.
- Transfer the token amount from Spot wallet to P2P wallet.
- Set up a payment method.
- Place a buy/sell order.
- The crypto will be locked by Binance P2P temporarily until the operation is completed.
- If you are a buyer, make the payment and notify the seller about the payment by clicking the “Confirm” button.
In case you are a seller, wait for the buyer’s payment confirmation before releasing the crypto.
- If the transaction was successful but the counterparty was not responding, then in those cases, you can open an appeal by using the “appeal” button. Binance P2P’s escrow service will return the cryptocurrency to the seller when the time for negotiation is over.
How to Sell Crypto Using Binance P2P
Step 1: Transfer Token From Spot Wallet To P2P Wallet
Click on Transfer against the token that you want to sell.
Enter the amount of tokens you want to transfer to your P2P wallet and confirm the transfer process.
Once confirmed, you can see the token amount in your P2P account against the token.
Step 2. Add Payment Method
Users need to add the payment method before making P2P trading.
Click on Add a Payment Method and it will show you the different methods which you can link your account.
Select your desired option.
- Bank Transfer
You can use Bank Transfer as a payment method.
Enter the bank details like your account number and IFSC code and confirm the process.
Users can also use UPI as a payment method.
Enter your UPI ID and UPI QR code and confirm the process.
You will receive a verification code on your registered mobile. Once verified, the UPI payment method will be added to your Binance P2P account.
Important: You can add up to 20 payment methods to your Binance P2P account.
Step 3: Place a Sell Order
Once you have set up the payment method, you can now go for selling crypto.
We have already transferred the USDT amount from Spot wallet to P2P wallet, and now we want to sell some USDT.
To sell, click on the Sell button appearing against the USDT token.
A window will appear that will allow you to filter the advertisers based upon the amount, fiat type, and payment method.
We have selected one advertiser, and now you need to enter the amount of tokens you want to sell.
The application will automatically fill in the payment method, and based on the price offered by the advertiser, the amount you will receive will also get displayed.
Important: We recommend you to check the payment time limit of the buyer before placing the order. Some buyers take too much time, making you have to wait a long time to get your money.
Click on Sell USDT and confirm the process.
You can now see the processing window containing a reverse timer that displays the time within which the transaction should be made.
You can also see a chat box that you can use to send a text message to the buyer.
Important: It is recommended to communicate with the other party using the chat service if you are trading with the users for the first time. The chat history can be used in a case of dispute and you can make an appeal using it.
Once the buyer has made the payment, you will get the below window.
It will now show your time limit to release the crypto by clicking on the Confirm Release button.
Confirm the process to finally complete the order.
Order completed, you can see the list of completed orders from the All Orders tab.
This is how we can proceed with P2P trading. We tried to cover almost everything which you should check before making a P2P trade. If you have any questions, feel free to ask.
In the next part of this series, we will see some more important features supported by the Binance exchange.